Debt Relief Order Can Deal with Personal Loans and Credit Card Bills

By:  02/11/2012
Keywords: debt management, consolidation loans

Residents of United Kingdom have several formal options to manage their debts if existing repayments terms are not working. If you have huge unmanageable debts then it is better to find alternative repayment plans. DRO, trust deeds, debt arrangement scheme, IVA and bankruptcy are some formal options. If you are not qualified for formal repayment plan then you may also go for informal options like debt consolidation and debt management to get out of debt. If financial situation is good enough then make repayments according to existing terms otherwise select right option for your debts. Before signing in any plan, it is quite necessary to analyze associated facts, terms and situations.

Here, you will find some important information about the debts that can be paid using DRO or debt relief order. This formal repayment plan offers several benefits for debtors but not an ideal solution for all type of debts.

DRO deals with certain specific debts that are listed below:

·        Credit card bills, loans and overdrafts

·        Overpayments benefits unless it was obtained by fraud

·        Telephone, council tax, utilities and rent

·        Buying Agreements like buy now- pay later

·        Conditional sale agreements or hire purchase

You can add all above mentioned debts in DRO payments but there are certain terms necessary to follow in order to add these debts. Some debts will be paid by debtor separately even after enrolling in debt relief order. These debts cannot be written off unlike other debts added in the repayment option.

Debts which cannot be added in DRO are:

·        Student loans

·        Confiscation orders and court fines i.e. the fines related to criminal activities

·        Child support and maintenance

·        Social fund loans

It is important to remember these things at the time of submitting DRO application. Certain things can help to complete the process successfully as well as to manage your expenses in efficient manner.

Keywords: consolidation loans, debt management



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